Sharon McDougall - Updated - 5th February 2024 - 2 minutes to read
If you’ve had a default placed on your credit file it can affect your financial situation in a number of ways. The drop in credit rating makes it more difficult to obtain borrowing, and in some cases, it can even affect your employment.
Defaults remain on a credit file for six years so this is a long-term impact rather than a temporary inconvenience, but if you believe the default is incorrect it’s important to contest it so your credit record reflects the true situation.
But how can you contest a default on your credit file, and what is the first step to take?
Three main credit reference agencies exist in the UK – Experian, Equifax, and TransUnion. The information held with each one can differ, however, so it’s important to order a copy from each agency.
If a default appears on one report, it could also be present on another, in which case you may need to contest an entry two or more times.
Get a rough indication of what your monthly repayments might be under each of our different debt solutions.
What does a default means to lenders?
When a default is on your credit file, lenders believe there’s a likelihood you won’t pay your debts on time and may even stop repayments altogether - this illustrates just how damaging a default can be and why you need to contest it if it’s incorrect.
So why might a default marker have been incorrectly placed? Lenders and other creditors do make mistakes when reporting information to credit reference agencies, with examples of errors including:
If you would like more information on contesting a default marker, or any other aspect of your credit rating, please call Scotland Debt Solutions. We specialise in helping Scottish residents to escape debt, and can arrange a same-day meeting free-of-charge at one of our offices around Scotland.
Borrowing money when you’re already deeply in debt requires careful consideration, and consultation with your trustee, as there are various factors associated with further borrowing in this situatio...
If you’re about to be discharged from a Trust Deed, you may be wondering to what extent your ability to obtain a mortgage has been affected.
If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work...
Why Choose Us
Speak Direct With
A Qualified Adviser
We Don't Operate
5 Offices in Scotland
Ask us About
Fully Regulated Advisors
From a Reputable Firm
Helping Scots Get
Out of Debt Since 1989
We'll give you a call
Our Scottish based team can help advise you on your debt problems.
Our personalised debt report will help you better understand your financial position and see where your money is going.
Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.
We can help you with...
Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debtsFind out More
A Trust Deed involves making a monthly contribution to your debts for up to four years. After this time any remaining debt included in the Trust Deed will not need to be paid.Find out More
A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.Find out More
Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority
Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.